The economists of ANZ Bank They see a turning point for EUR/USD and expect the pair to reach 1.15 by the end of next year.
Interest rate declines are not necessarily negative for the EUR
We expect the Euro to be at 1.15 at the end of 2024. The determining factor is the bearish view of the Dollar, which took the Euro to 1.10 at the end of November. We believe that cyclical factors will also push the EUR higher, based on the view that growth indicators are stabilizing and that the EUR/USD bottom has already been set for this cycle.
The EUR's bullish move will likely be more dominant in the second half of 2024, as the USD is seasonally stronger at the beginning of the year.
We expect the ECB to begin easing its monetary policy in March 2024. Interest rate reductions are not necessarily negative for the Euro. As the real yield differential between the US and the Euro narrows, we believe this will help support the rises in EUR/USD.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
